Thank you for contacting me about support for self-employed and freelance workers.
I share your desire to support everyone across the economy. During the current pandemic, it is crucial that everyone, no matter what their field, is supported to the fullest possible extent.
We must do whatever it takes to protect jobs and livelihoods across the UK, and we must adapt our support as the path of the virus changes. It is right that the Self-Employed Income Support Scheme has been adjusted to ensure parity with the CJRS. The SEISS grant rate for the November to January period increased from 40 per cent to 80 per cent of average trading profits, up to a maximum of £7,500. Increasing our support for the self-employed will protect millions of jobs and give people and businesses the certainty they need over what will be a difficult winter
The Coronavirus Job Retention Scheme can be applicable to full-time employees, part-time employees, employees on agency contracts, and employees on flexible or zero-hour contracts. Employers paid ER NICs and pension contributions and 20 per cent of wages to make up 80 per cent total up to a cap of £2,500. It is clear the economic effects of fighting COVID-19 last longer for businesses than the duration of any given restrictions, and we need to go further with our support.
Ii is good news that the Coronavirus Job Retention Scheme has been extended until the end of April in response to new national restrictions, and to give people and businesses across the whole United Kingdom the certainty they need over what will be a difficult winter. Under the extension the government will pay 80 per cent of wages up to a cap of £2,500, with employers paying employer National Insurance Contributions (NICs) and pension contributions only for the hours the employee does not work. Flexible furloughing will be allowed in addition to full-time furloughing.
I do, however, understand that every individual circumstance cannot necessarily be accounted for. In the event that you have been affected by the pandemic, yet you are ineligible for the aforementioned schemes, I urge you to apply for Universal Credit. The Chancellor increased Universal Credit by £1,000 a year for 12 months in order to support people through Covid-19.
As I am sure you are aware, this extra support was announced by the Chancellor as a temporary measure in March 2020 to support those facing the most financial disruption as a result of the public health emergency. The Government has also introduced measures such as mortgage holidays, additional support for renters and has worked with energy suppliers to protect those struggling with energy bills to support those who need it most.
The statutory annual review of benefits does not include the need for a decision on the £20 per week uplift to Universal Credit and Working Tax Credits. I am assured, however, that discussions remain ongoing, and decisions on the future of the uplift will be taken later in 2021.
Thank you again for taking the time to contact me.
Craig Whittaker MP
February 2021